While taking Dell Inc. private could amount to one of the biggest leveraged buyout deals in history, it’s totally doable.

That’s the takeaway from Deutsche Bank analyst Chris Whitmore, who crunched the numbers and concluded that a deal is feasible based on the interests of the parties involved.

“In short, we believe a transaction is doable on paper from a balance sheet capacity, interest coverage and leverage standpoint,” Whitmore said in a note to clients Tuesday morning. “The hurdle is deal size and the large amount of capital required to execute such a transaction.”

Dell Inc. has held talks recently with buyout firms Silver Lake Partners and TPG about going private, the WSJ reported in today’s paper, as the technology company struggles to find a new course for itself following the end of the personal-computer boom. Talks between Dell and private-equity firms have been going on for the last two to three months, and a potential deal could emerge within six weeks.

Whitmore said a deal would likely require somewhere between $20 billion and $25 billion in outside financing. “The problems with a potential deal would be the scale of the financing required, willingness of key investors including Michael Dell (~16% holder) and the related ability to execute,” Whitmore says. “That said, such a transaction could provide very attractive returns for new investors and provide the opportunity to manage the Dell turn-around strategy outside of public market scrutiny.”

Whitmore estimates a deal in the $15-to-$16 range “would generate substantial returns for any potential buy-out group while still offering material upside to Dell’s current price.”

A $16-a-share price tag would represent a 30% premium from Monday’s closing price. As a result, Whitmore lifted his price target to $15 from $13, while maintaining his buy rating on the stock.

“We expect LBO speculation to underpin Dell’s valuation and shine a light on what we’ve long argued is an undervalued asset,” Whitmore says.

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